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2023 (7) TMI 168 - AT - Income TaxAddition u/s 36(1)(va) r.w.s. 2(24)(x) - delayed deposit of employees’ contribution to PF/ESI i.e. after the due date as provided under the respective welfare enactments - Who's duty to deposit contribution? - HELD THAT:- Once the employee has earned basic wages, the Act under Section 6 r/w Para 30, 32 &38 of the ‘Scheme’ casts a duty upon the employer to deposit the contribution with the Employees Provident Fund Organisation. As per Para 30 of the Scheme, the employer at the first instance has to pay both the contribution payable by himself and also on behalf of the member employed by him. Under Para 32, the employer is authorised before paying the member employee his wages to deduct the employee's contribution from his wages. As per para 38 of the Employees' Provident Funds Scheme prescribes mode of payment, the employer is required to remit both the employees' as well as the employer's share of contributions together with administrative charges thereon before the close of the 15th of every month electronically through internet banking of the authorised banks, portal etc. Para 38 of the scheme is to be read in consonance with the Para 30 and 32 of the Scheme along with relevant provisions of the EPF Act, 1952. The Employees Provident Fund and Miscellaneous Provisions Act, 1952 is a beneficial piece of legislation for providing social security to the employees and their families and casts an obligation upon the employer to make compulsory deduction for provident fund and to deposit in the workers account in the EPF office. The initial responsibility for making payment of the contribution of the employer as well as of the employee, lies on the employer, however, the employer is authorised before paying the member employee his wages in respect of any period or part of period for which contributions are payable, to deduct the employee's contribution from his wages. The issue is squarely covered against the assessee by the decisions of CHECKMATE SERVICES P. LTD. [2022 (10) TMI 617 - SUPREME COURT] and many High Courts of the country. There is no merit in the appeal of the assessee, the same is accordingly, hereby dismissed.
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